I’m no economist, but there sure are a lot of them writing and talking about a possible recession. If a recession is indeed around the corner, I hope it happens later than sooner. But either way, we must prepare our businesses to ensure they weather the storm. I truly believe that those of us who take the right steps will come out on the other side in good shape.
Measuring payroll against gross profit is critical, but cutting payroll or reducing head count aren't the only ways to bolster the bottom line. The best practice is to involve the whole store in making improvements.
Do you really need more employees? Step through your store numbers with Dealer Strategic Planning's George Kingman. The results may be one of the most eye-opening things you can discover in 30 minutes with a calculator.
I'm always looking for potential 'fires' in a client's business. The trouble is, a person can pour gasoline on a hot spot and no one recognizes a problem until it's out of control. The solution: training and no shortcuts.
Training someone to work in a tire store is like teaching algebra — the student has to know the basics first. Muscle memory helps in math, and it can help a new employee learn the ropes without taking shortcuts.